KOSPI Reclaims 6,100 After Five-Day Slide; Earnings, Shareholder Returns and Market Confidence Key to Rebound

The KOSPI rose 1.6% from the previous trading day to 6,136 points, reclaiming the 6,100 level. The recent sharp decline had pushed the index below 6,000 and fueled concerns about further losses, but after trimming its losses late in the previous session, the market rebounded on the day, showing signs that the level could hold. The KOSDAQ traded in a mixed, roughly flat range around 837 points as stocks that had rallied late the previous day took a breather.

The won continued to strengthen, with the won-dollar exchange rate falling 3.20 won to 1,338 won. Samsung Electronics and SK hynix rose about 3.4% and 2.5%, respectively, though the gains remained limited given their recent losses. The hosts interpreted the day's rise as a rebound driven by bargain hunting after the sharp decline, and said the absence of further negative news had helped bring in buyers.

U.S. stocks held up relatively well, with major indexes remaining resilient despite weakness in semiconductor shares. WTI rose about 0.7–0.8% during the session, topping $94, while U.S. stock index futures were modestly higher. Japan's Kioxia remained weak after plunging 13% the previous day, while China's CXMT advanced.

The U.S. consumer price index and producer price index were scheduled for release the following day, and TSMC's earnings were also cited as a focus. ASML was due to report earnings that afternoon. The data and results from major semiconductor companies could affect interest-rate expectations and assessments of the industry outlook, making it important to watch for near-term volatility.

Samsung Electronics Chairman Lee Jae-yong bought shares in the company over the counter on October 12 at 250,500 won apiece. The purchase was worth about 1.9 trillion won. News later emerged that Hong Ra-hee would gift Lee Samsung Electronics shares worth about 2.6 trillion to 2.7 trillion won on November 12. Once the gift is completed, Lee's stake in Samsung Electronics will be about 1.75%.

The market viewed the controlling family's large-scale purchase and gift as a signal that the shares were trading at a low level. The hosts noted that investors had been looking not so much at Samsung Electronics' earnings as at buying pressure and additional catalysts that could lift the stock. They also mentioned investors' disappointment that the news of the purchase came after the share price had fallen, rather than after it had risen.

Kwangsoo Lee interpreted the transfer of shares as a possible signal of future shareholder-return measures, such as dividends and share buybacks. The program also calculated that if Samsung Electronics substantially increased its annual dividend, the amount attributable to Lee based on his stake could be considerable. The scale and details of shareholder-return policies at the annual general meeting in January next year were identified as a key point for investors to watch.

Reports said SK hynix had contacted global investment banks about pursuing a Nasdaq listing for its U.S. subsidiary Solidigm. The reports argued that Solidigm was an overseas subsidiary acquired by the company, rather than a newly created entity formed by carving out a core business, and therefore differed from a typical spin-off listing. Kwangsoo Lee, however, argued that the principle of not separately listing subsidiaries is central to investor confidence, whether the subsidiary is domestic or overseas, and that an exception should not be made simply because it is based abroad.

He said the multilayered ownership structure running from SK Inc. through an intermediate holding company, SK hynix, a U.S. entity and Solidigm makes it difficult to assess corporate value. The capital used to acquire Solidigm was ultimately borne by SK hynix shareholders as they weathered a difficult industry downturn; if the subsidiary is listed after its business recovers, the existing shareholders may not fully share in the gains from its growth. He stressed that explanations such as limited dilution or the fact that the company was acquired in the United States would not, on their own, resolve shareholder concerns.

Kwangsoo Lee said companies, the government, investors, the media and experts must work together to build confidence in the market. He criticized the volume of content that merely reports market rises and falls, as well as the circulation of investment advice without accountability. He also said AI-generated investment scam ads using the host's likeness and paid stock chat rooms were rampant. Rather than attributing investment losses solely to individual decisions, he argued, the information environment, corporate governance and investment culture must all be improved.

Attention focused on how SK Group Chairman Chey Tae-won might raise funds using his shareholdings, as he could be required to pay about 940 billion won if the property division ruling stands. Reports said some shares had been transferred to a strategic investor, while the rest were placed under a price return swap (PRS) agreement with Korea Investment & Securities. Some reports identified the strategic investor as a fund run by Michael Dell.

Kwangsoo Lee said that under the PRS agreement, the shares would be settled after the agreed period even if legal title had been transferred, raising the possibility that Chey could retain effective influence over the stake. He also suggested that the shares transferred to the strategic investor may have been subject to arrangements to buy them back later or cooperate on business, rather than representing a straightforward sale. The point, he said, was that the actual sale status and voting-rights arrangements needed to be verified.

Whether investors holding the shares qualify as persons acting in concert with Chey, and whether related disclosure obligations and voting-rights restrictions apply, were also raised as issues. In particular, given the rule limiting the combined voting rights of a largest shareholder and related parties to 3% when electing audit committee members, the nature of the share transfers should be clearly disclosed, commentators said.

Elon Musk argued that Micron had earned long-term customer loyalty by pricing memory reasonably, while other companies had demanded excessively high prices. The hosts said memory prices are set through market supply and demand and contract negotiations, so Musk's remarks about a particular company's pricing policy may have reflected a separate agenda. They also compared the stocks, noting that Micron had recovered more than 20% from its low after retreating from its peak, while SK hynix's recovery had been limited.

Reports said Anthropic planned to disclose its third-quarter results at an event for institutional investors. Given the debate over how it recognizes revenue, including comparisons with OpenAI, investors are watching how the company explains its results. Reports also suggested that its registration statement could be made public within 10 days and that a listing before U.S. Thanksgiving was possible.

As expectations grew that Anthropic's valuation could reach $2 trillion, concerns were raised that a successful IPO could generate substantial demand for capital and absorb liquidity from other markets. A $2 trillion valuation would exceed Meta's market capitalization, and the actual valuation and offering size remain to be confirmed. Samsung Electronics and SK hynix are reportedly investors in Anthropic, making their stakes and the potential effects of a listing another focus.

Lotte Shopping plans to introduce a shareholder-benefit program in November, becoming the first major South Korean conglomerate to do so. Shareholders holding at least one share will receive discount coupons usable at its department stores, hypermarkets, supermarkets and e-commerce businesses, along with points based on their purchases. The company also plans to offer additional benefits, including department-store lounge access, parking and free-delivery coupons, to shareholders holding at least 1,000 shares for more than a year.

The program also highlighted Dalba Global as an example of a company offering separate benefits to long-term shareholders. Kwangsoo Lee said stock investment should not remain merely a game of buying and selling in response to daily share-price fluctuations, and described the initiative as an effort to increase the value of being a shareholder who participates in a company's growth and shares in its gains. He said shareholder returns are not limited to higher dividends, and noted the significance of fostering a culture in which companies distinguish among and reward their shareholders.

However, at a Lotte Shopping share price of 90,000 won, owning 1,000 shares would require about 90 million won, prompting concerns that the threshold for premium benefits was high. The possibility of introducing intermediate tiers based on the number of shares held was raised. The key question is whether shareholder benefits will become a system that builds mutual trust between shareholders and the company, rather than remaining a marketing tool.

As Samsung Electronics and SK hynix concentrate resources on high-bandwidth memory (HBM) production, they are increasingly outsourcing back-end processing and testing for commodity memory. HBM is a high-value product with substantial processing and validation requirements, drawing internal production resources toward it, while a greater share of back-end processing for conventional DRAM is outsourced. The industry is watching for rising demand in the OSAT sector, which comprises outsourced semiconductor assembly and test providers.

Doosan Tesna, SFA Semicon and Hana Micron were cited as potential beneficiaries among companies involved in back-end processing and testing. Kwangsoo Lee said the domestic supplier ecosystem had weakened because major semiconductor companies had handled most processes in-house. If production volumes shift to suppliers, their work and revenue could increase, creating a basis for investment in their own research and development. He described this as a possible starting point for a change in the industry structure.

It was noted that Taiwan's semiconductor industry has a strong ecosystem in which TSMC and its suppliers grow together, with some suppliers recording operating margins in the double digits, while many domestic suppliers remain at low, single-digit or lower profitability. The key is whether outsourced volumes lead to greater technical capabilities and bargaining power for suppliers, rather than just temporary work. Commentators also said that competitiveness in materials, parts and equipment cannot be built through share-price gains alone; it requires an environment that supports stable demand and investment in research and development.

John Williams, president of the Federal Reserve Bank of New York, said one additional rate hike this year could be appropriate, while further increases might not be needed next year as inflation was expected to ease and move closer to the 2% target. Given Williams' influence within the Fed, markets viewed his remarks as a clue to the future rate path. They were interpreted as a cautious stance that left room for one hike by year-end without firmly committing to it.

Fed Governor Christopher Waller said rising short-term Treasury yields were already weighing on rate-sensitive sectors such as housing and autos, and that elevated market rates were having a tightening effect. With U.S. mortgage rates at around 7%, economic activity could be constrained even without another increase in the policy rate. Both remarks were read as easing pressure for further tightening.

Kwangsoo Lee said inflation had already risen sharply this year, partly due to the war, and that the base effect could make another sharp increase in the inflation rate less likely next year. If inflation moves closer to the 2% target, the need for the Fed to raise rates further would also diminish. In the near term, however, the consumer price index release and the December dot plot could once again shift market expectations for interest rates.

Europe said it plans to cap imports of Chinese-made hybrid cars at 350,000 a year and raise the limit by 6% annually for four years thereafter. The European Union described the measure as a safeguard for its domestic auto industry. With restrictions extending from Chinese-made electric vehicles to hybrid cars, expectations grew that Korean automakers and battery companies competing in Europe could benefit.

According to an analysis by Han Byung-hwa, a research fellow at Eugene Investment & Securities, Europe's electric-vehicle market returned to growth last year, and sales are forecast to increase by more than 20% this year and next. The additional restrictions on Chinese companies' market access could also benefit Korean battery companies. The program noted strength in secondary-battery-related stocks, including Samsung SDI, SK Innovation and LG Energy Solution, as well as a recovery in shares that had plunged the previous day.

The hosts said major European manufacturing countries, including Germany and France, faced competitive pressure from Chinese products and therefore had strong incentives to increase protectionist measures. Easing pressure in the North American market and a recovery in European electric-vehicle demand also supported sentiment in the sector. However, they added that confidence in the battery industry had yet to fully recover from past investment experiences, and that investors needed to see whether the policy effects translated into actual sales and profitability.

Kwangsoo Lee stressed that stocks are assets traded on the basis of trust in companies and markets, unlike physical goods. Investors entrust companies with significant amounts of capital, but much economic content simply explains why indexes rose or fell, with little accountability on the part of those providing the information. He argued that the more content encourages investors to chase ever-changing daily market conditions, the greater their anxiety and confusion become.

He said the media and experts should scrutinize how companies treat shareholders and address governance issues. In the Solidigm listing controversy, the fact that a subsidiary is overseas cannot be used to sidestep questions about the risks borne by existing shareholders and how future growth gains will be shared. Investors look at how a company treats them before and after it makes money, he said. Companies, the government, investors, the media and experts must work together to build confidence and change poor market practices.

Kwangsoo Lee said investors who suffered losses during the sharp decline should not be held solely responsible. His point was that the investment environment is shaped not only by individual decisions but also by market rules, corporate shareholder policies and the flow of information. He argued that there was reason for long-term optimism given the scope to improve the market, while stressing the need to continue education and criticism and to bring about changes that protect investors and restore confidence.

A viewer asked how quickly the government's measures to normalize the stock market had actually been implemented. The viewer said there had been a promise to build a foundation for investment in stocks rather than real estate, but that the government had offered too little explanation or response during the market crash and range-bound trading, leaving individual investors seemingly alone in the market.

Kwangsoo Lee said he would speak up on behalf of investors' anger and fatigue. Rather than simply blaming individual investors for their losses, the government should implement the promised institutional reforms, while companies and other market participants should also work to restore confidence, he argued.